Archive · 3 Dec 2025
Norway Secures Budget Deal, Averting Cabinet Fall
Norway's Labour Party had a tough time getting other left-wing parties to agree on the budget for next year.
They needed the support of four smaller parties to pass it.
Two big issues were causing problems: one party wanted Norway to stop investing in Israeli companies, and another wanted to slowly stop the oil industry.
But in the end, they couldn't agree on those things.
The government said they won't stop the oil industry but will look at ways to adapt as oil and gas production decreases.
This deal means the prime minister doesn't have to call a vote of confidence, and the government can stay in power.
Norway's Labour Party reached a budget agreement with four left-wing parties, preventing a cabinet fall.
Demands for divestment from Israeli companies and a phaseout of the oil industry were excluded from the deal.
The Socialist Left Party's demand for divestment from Israeli companies was not met.
The Green Party's demand for a gradual phaseout of the oil industry by 2040 was also not met.
The government will appoint a commission to assess scenarios for adapting to declining oil and gas production.
- Who
- Norway's Labour Party and four left-wing parties
- What
- Reached an agreement on the 2026 fiscal budget
- When
- Wednesday, December 3, 2024
- Where
- Oslo, Norway
- Why
- To prevent the cabinet from falling and to pass the budget
- Parties Involved
- Labour Party, Socialist Left Party, Green Party, and two other left-wing parties
- Budget Year
- 2026
- Norway's Oil Industry Status
- Europe's top gas supplier and major oil exporter
- Commission Purpose
- Assess scenarios for adapting to declining oil and gas production